Business

5 Madison start-ups to make pitches to Silicon Valley capitalists

Five companies have been chosen to represent Wisconsin's emerging entrepreneurial community next week during an all expense-paid trip to California to make pitches to Silicon Valley venture capitalists.

The trip, organized by the Greater Madison Chamber of Commerce, is intended to tout the city's ability to create and nurture start-ups and help the companies make more connections on the West Coast.

"We are confident these five companies will leave a positive, lasting impression on Silicon Valley while gaining key connections and exposure at a critical time in the growth of their businesses," said Zach Brandon, president of the chamber.

Zendesk, a San Francisco software development company that recently went public, has plans to expand its office in Madison to about 100 employees by the end of the year. When Abbott pressed Svane about his choice to locate a hub in Madison, Brandon went to work.

Brandon called Abbott and invited the California venture capitalist to visit Madison and see what Svane was so excited about.

"He said, 'I'm not coming to Madison, but I like what you're up to. So how do I help?'" Brandon recalled.

The five companies will visit Kleiner Perkins, along with several other large venture capital firms referred by the State of Wisconsin Investment Board and the Wisconsin Alumni Research Foundation, Brandon said. The Wisconsin Economic Development Corp. will sponsor a reception after the companies make their pitches at the recently opened Ephiphany Hotel in downtown Palo Alto.

Propeller Health, a Madison maker of a digital system for people with chronic respiratory diseases that was chosen for the trip, is looking to make connections during the trip to new investors on the West Coast, said Mark Gehring, co-founder. But the company has other motivations as well.

"We're thrilled to represent what Madison companies are doing and show that Madison companies can be very successful," said Gehring, whose start-up has raised about $9 million in previous funding rounds, mostly from California venture capitalists.

Madison has a strong health care information technology scene anchored by Epic Systems, the University of Wisconsin-Madison and GE Healthcare, and the added advantage that it lacks the "craziness" of the West Coast, where it's difficult to hire and keep software engineers, Gehring said.